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April 2018SAP ERP Pricing for the Digital Age 2018 SAP SE or an SAP affiliate company. All rights reserved.Addressing Indirect/Digital Access1/7

Table of Contents3Summary4Pricing Model Objectives4New Indirect/Digital Access Pricing Model5Indirect/Digital Access Document License Calculation5Pricing for Direct and SAP Application Access6What are the options for existing customers given thisnew Indirect/Digital pricing model?6Do Nothing6License Exchange7Contract Conversion7SAP Cloud ExtensionThis document provides a general description of the new outcome-based ERP pricing for thedigital age announced on April 10, 2018.For additional information contact your SAP Account Executive.This document is for informational purposes only, and provides general guidelines regarding SAP’s pricing modelsand policies as of April 2018. It is provided without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. This document shall not be incorporatedinto any contract and does not constitute a contract, an agreement or commitment to any specific terms, or anmendment or supplement to a customer’s contract. Policies and this document are subject to change without notice.Should a customer have questions, they should engage their SAP Account Executive. Pricing models and policies,and changes thereto, and any referenced contract terms are intended to provide a consistent, globally-applied filterto the licensing discussion. However, a customer’s situation or contract terms may be different, and must be evaluatedunder their specific SAP contract. SAP reserves the right to revise its policies from time to time.This document may not be reproduced in any manner without the express written permission of SAP SE.All Rights Reserved.2/7 2018 SAP SE or an SAP affiliate company. All rights reserved.

ngSUMMARYThe technology landscape and how customersconsume and use SAP software has undergonedramatic changes. Not only are our customers’employees using the Digital Core (i.e., SAP ERP,SAP S/4HANA and SAP S/4HANA Cloud), theirbusiness partners, consumers, third-party applications, IoT devices, automated systems, andRPA/bots are also using the Digital Core. Indirect/Digital Access is when people or thingsuse2 the Digital Core without directly logging intothe system. It occurs when humans, any device orsystem, indirectly use the Digital Core via non-SAPintermediary software, such as a non-SAP frontend, a custom-solution, or any other third-partyapplication. It also occurs when non-humandevices, bots, automated systems, etc. use theDigital Core in any way. It is hard to measureuse accessing via Indirect/Digital Access, henceSAP is modernizing its pricing model to be moretransparent and predictable.mains unchanged, new pricing model for Indirect DigitalFigure 1: Use of SAP ERP and Types of AccessERP Pricing ModelAvailable April 2018 Onwardssedly)Outcome-BasedUser-Based§ User Licensenseensend Service Ordersse OrdersSAP ERP§ Document LicenseDigitalCoreS/4 HANA§ No additional ERP license needed1n Extensions containing the required measurement functionality. This does not apply to technology solutions, such as platform, database, middleware integration and Enterprisesulting from access by properly licensed SAP applications.41. Provided ERP is otherwise licensed, no additional ERP license is needed for use of the Digital Core resulting from accessby properly licensed SAP Applications.2. SAP On Premise Contractual Definition of Use: ‘Use’ is defined as to activate the processing capabilities of the Software,load, execute, access, employ the Software, or display information resulting from such capabilities. Use may occur by wayof an interface delivered with or as a part of the Software, a Licensee or third-party interface, or another intermediary system.All ‘use’ of SAP software, regardless of the method of access, requires an appropriate license.3/7 20xx SAP SE or an SAP affiliate company. All rights reserved.

PRICING MODEL OBJECTIVESThe new pricing approach for Indirect/Digital Accessfocuses on business outcomes and provides an objectivemeasure for the use of the Digital Core.NEW INDIRECT/DIGITAL ACCESS PRICING MODELSAP has idenfitied nine document types that representsystem generated records of commonly valued businessoutcomes from the Digital Core. Use of the Digital Corethrough Indirect/Digital Access will be licensed based onthese nine document types; there is no additional chargefor other document types. Counting Documents.– One time create cost. SAP counts and charges forthe creation of documents triggered via Indirect/DigitalAccess.– Read, update, delete included. All read, updates, anddeletion of documents via Indirect/Digital Access donot incur an additional charge.– Initial document creation only. SAP counts only theinitial documents created. For example: a salesdocument created by Indirect/Digital Access is automatically processed in the Digital Core resulting inthe creation of invoice, material or financial documents.SAP would charge only for the sales documentsinitially created and not for the subsequentdocuments.– Multiplier. Not all documents are weighted equally.Most documents are weighted at 100% (multiplier 1),documents of lower value and more frequently usedare weighted at 20% (multiplier 0.2). Volume Discounts. the higher the number of documents,the lower the price per document.4/7 2018 SAP SE or an SAP affiliate company. All rights reserved.

INDIRECT/DIGITAL ACCESS DOCUMENTLICENSE CALCULATION A Document License reflects the total documentslicensed for a 12-month period. This total is thesum of all document types times their respectivemultiplier. New SAP customers with no historical data mayestimate the number of documents neededby using benchmark data applicable to thecustomer’s business. For existing customers,an estimate of needed documents can becalculated using historical data. SAP is planning to provide customers with toolsto monitor and measure ERP use.Document TypePRICING FOR DIRECT AND SAP APPLICATIONACCESSDirect Human Access to the Digital Core continuesto be licensed based on users. 1Provided ERP isotherwise licensed, no additional ERP User licenseis needed for use of the Digital Core resulting fromaccess by properly licensed SAP Applications. SAPapplications refer to line of business and industryapplications (on premise and cloud); it also refersto SAP Solution Extensions. This does not includetechnology solutions (e.g., database, middlewareintegration, SAP Cloud Platform, etc.)QuantityMultiplierTotalSales (counted at line item level)Invoice (counted at line item level)Purchase l(counted at line item level)Service & MaintenanceManufacturing Quality managementTime l (counted at line item level)Financial (counted at line item level)01,0000.20.20200Total Capacity800License Cost Total documents x document price5/7 201820xx SAP SE or an SAP affiliate company. All rights reserved.

Figure 2: Optionsfor existingcustomersOptionsfor existingSAPSAPERPERPcustomersStatus Quo – Do NothingFor customers happy with their contractand who do not want to changeOption 1License ExchangeContract ConversionFor customers wanting improved transparency forIndirect/Digital access & remain in existing contractOption 2For customers licensing SAP S/4HANA andwanting to consolidate / simplify old contractsOption 3SolutionsSolutionsSolutionsSolutionsOrder License*Order License*OrderLicense*DocumentsOrder License*DocumentsUser LicenseUser LicenseUserUserLicenseLicenseUser LicenseUser LicenseDBDBDBDBDBSAP HANALicense Value License Credit Current Contractwith AddendumContract Value Contract Credit Current ContractConverted ContractCurrent ContractCurrent ContractSolutions Continue with current contract. No change. Continue with current contract with addendum Replace current BOM with new BOM that includes a Continue to use User and Order* Licenses for all Up to 100% credit for User and/or Order licensesimplified licensing dPurchaseOrderProcessing/Executiontypes of use and accessvalue** applied to new Document license value Opportunity to reconfigure solution landscape (new bill Back maintenance for indirect access waived 100% of the maintenance base of the convertingof material)licenses is carried forward. Up to 100% credit for old contract value** applied to Back maintenance for indirect access waivednew S/4HANA contract value 100% of the maintenance base of the converting*Sales & Service Order Processing/Execution and Purchase Order Processing/Execution; ** Conditions applylicenses is carried forward 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC7 Back maintenance for indirect access waivedWHAT ARE THE OPTIONS FOR EXISTINGCUSTOMERS GIVEN THIS NEW INDIRECT/DIGITAL PRICING MODEL?Existing SAP ERP on premise customers maychoose to do nothing and keep current contractterms in place, or choose to take advantage ofthe new Indirect/Digital Access pricing with eitheroption of a License Exchange or a full ContractConversion to a new simplified contract. We arecommitted to working with customers interestedin reconfiguring their licenses per the new model.SAP assures customers who proactively engagewith us in good faith that we will not pursue backmaintenance for under-licensing of SAP Softwareassociated with indirect access.Do NothingThis option is best suited for existing customershappy with their contract terms who do not wantto change. There are no changes to existing contract terms, and customer will continue usingUser and Order Licenses for all types of access.6/7 2018 SAP SE or an SAP affiliate company. All rights reserved.

License ExchangeFor existing SAP ERP customers wantingimproved transparency for Indirect/Digitalaccess while not converting existing contractContract ConversionFor existing SAP ERP customers licensingSAP S/4HANA and wanting to consolidate/simplifyold contracts (full contract conversion)The License Exchange option keeps existingcon-tract in place and adds an addendumoutlining the new modern ERP pricing usingDocument Licenses for Indirect/Digital Accessuse. Customer receives a credit of up to 100%of the license fees paid3 for the user and/ororder licenses exchanged (e.g., Sales & ServiceOrder Processing or Purchase Order Processing)for equivalent value in Document Licenses.(100% credit is limited to the net fees owedfor the Document License)100% of the maintenance base of the convertinglicenses is carried forward. An example follows:The Contract Conversion option applies thevalue of the licenses in the customer’s existingcontract as a credit towards a new reconfiguredSAP S/4HANA-based solution landscape thatmeets current and future business needs. Replaces current bill of materials (BOM) withnew SAP S/4HANA based BOM that includessimplified licensing structure Opportunity to fully reconfigure solutionlandscape (new BOM) based on currentand future needs Up to 100% credit3 for old contract valueapplied to new bill of material Access to legacy SAP software duringthe transition One-time event Maintenance base does not go downDescriptionCalculated Cost for documents(Based on historical records ondocuments needed)Value in 500,000Credit for Sales and Service OrderProcessing Licenses(150,000)Credit for subset of User Licenses(350,000)Net Cost to CustomerMaintenance Base Carried Forward(based on total credits exchanged)0SAP CLOUD EXTENSIONCustomers ready to move to the cloud or optfor a hybrid (on premise and cloud) landscapemay take advantage of the SAP Cloud Extensionpolicy to convert on premise maintenance feesto a subscription service spend on SAP Cloudsolutions.500,0003. Conditions apply.7/7 2018 SAP SE or an SAP affiliate company. All rights reserved.